LUMBER confiscated through the government’s anti-illegal logging operations have been donated to Davao del Sur province for distribution to families affected by the series of earthquakes in Mindanao last year, the Department of Environment and Natural Resources (DENR)-Davao Region office said in a statement Monday. The timber, totalling 31,892.54 board feet, came from the DENR regional offices in Davao and Caraga. DENR Secretary Roy A. Cimatu issued a directive last year to its Mindanao offices to release confiscated lumber to help Mindanao earthquake victims rebuild their homes. DENR Undersecretary for Enforcement and Muslim Affairs Jim O. Sampulna said during the Deed of Donation signing that the move is a demonstration that the agency’s “mission is not only to have a cleaner and greener environment, but it also includes looking at the welfare of the people.” Davao del Sur was among the hardest hit areas by the series of earthquakes that shook Mindanao in the last quarter of 2019, the strongest of which had a 6.9 magnitude with the epicenter in the province’s Matanao town. Latest data from the national disaster management council show over 32,000 families remain displaced, of which 9,269 are still staying in evacuation centers as of January. A total of 45,085 houses were damaged, with 7,324 totally destroyed.
The Japan International Cooperation Agency’s (JICA) first video blog contest for young Filipinos attracted students and young professionals sharing their views on issues ranging from transport infrastructure to disaster management, agriculture, and peace and development.
Ultimately, two students from Mindanao State University-Iligan Institute of Technology, Shannefamel Almazan, 20, and Prince Loyd Besorio, 20 won the contest with their entry on their experiences witnessing the seige of Marawi.
In their vlog, the pair talked about witnessing the effect of the armed conflict in Marawi City in 2017 and their wish for peace and solidarity in Marawi. They mentioned that assistance from Japan during the city’s rehabilitation was a “senbazaru” (Japanese belief of granting someone’s wish).
“The projects of JICA made me realize that people you don’t even know are willing to help. As a Filipino, the rehabilitation help from other countries is a call for us to unite and strengthen the spirit of bayanihan (collective help) and our role as peace makers in our country,” said Almazan in the vlog.
JICA Philippines Chief Representative WADA Yoshio said the video blog contest was “an opportunity to listen to the voices of young people on international cooperation and for nations to collaborate together in solving common problems.”
JICA is currently supporting a Road Network Development Project in Conflict-Affected Areas in Mindanao that includes the construction and rehabilitation of the Marawi City Ring Road among others as support to the region’s economic development and peace building. Marawi City, capital of Lanao del Sur Province in Mindanao, was once a trading hub until armed conflict razed the city in 2017.
For winning the video blog contest, Almazan and Besorio, earned a trip to Japan this year where they will have the chance to visit the JICA Headquarters in Tokyo, experience Japan’s culture, and visit places of interest like the Hiroshima Peace Memorial Museum.
The contest is supported by All Nippon Airways Co. Ltd. (ANA), Business Mirror, BusinessWorld SparkUp, Japan Foundation, and Japan National Tourism Organization.
“All the entries from young Filipino video bloggers were very inspiring and offered a fresh perspective on the bilateral relations of our countries. JICA looks forward to giving young people more platforms to share their ideas and experiences,” added Wada.
Aside from the video blog contest, JICA has been supporting human resource development in the Philippines training young Filipino professionals from government and promoting people-to-people exchange with the dispatch of young Japanese professionals to support Philippine development.
Zipline is the world’s first drone delivery service providing life-saving medicines to isolated communities otherwise considered unreachable. To date, they’ve made well over 14,000 deliveries in areas across Rwanda and Ghana. Currently, the team is in advanced talks with the local government to not only bring those services to the Philippines, but potentially turn the country into Zipline’s regional headquarters.
The drones, called Zips, are electric airplanes weighing in at roughly 35 pounds. Designed and manufactured by Zipline, they navigate to and from their destinations via an onboard chip. They are launched from distribution centers, and are tracked throughout their journeys by trained local operators.
Situated in perhaps the coolest workspace in Silicon Valley–a ranch in Half Moon Bay just south of San Francisco–Zipline’s US team is hard at work testing out innovations that will soon go on to save countless lives around the world. In this video, key members of Zipline’s team speak to us about the joys of purposeful work and how they plan to bridge 7,107 islands with a fleet of unmanned drones delivering life-saving cargo.
This visit to Zipline’s ranch headquarters was organized by StartUp Village as part of their ENGAGE: Silicon Valley Immersion program. ENGAGE brings Philippine startups, entrepreneurs, and corporate executives to the global epicenters of innovation.
Philstar Media Group’s Lucien Dy Tioco leads 2020 Philippine Marketing Association Board
By Mark Louis F. Ferrolino, Special Features Writer
With his impressive style of leadership and strong passion for work, it comes as no surprise when PhilStar Media Group Executive Vice-President Lucien C. Dy Tioco earns a top seat in a reputable organization or gets recognized by a prestigious award-giving body. Most recently, he added another achievement under his name as he becomes the newest president of the Philippine Marketing Association (PMA), the country’s elite group of marketing leaders.
Mr. Dy Tioco and the rest of the 2020 PMA Board of Officers and Directors were inducted by Senator Mary Grace L. Poe last Jan. 29. During his inaugural speech, Mr. Dy Tioco shared his plans for the 66-year-old organization and identified specific actions on how to attain these. From the way he presented his vision for PMA, one can already realize the burning passion driving Mr. Dy Tioco in all his endeavors.
Senator Mary Grace L. Poe (leftmost) inducts the 2020 PMA Board of Officers and Directors.
Despite some expected hurdles along the way, Mr. Dy Tioco’s courage to lead a community of globally competent Filipino professional marketers in an era of unprecedented change remains firm. With him now sitting at the helm of the PMA, an exciting, great year awaits not only for the organization but also for the entire local marketing industry.
A TRAILBLAZER IN HIS FIELD
Before becoming the visionary marketer and communicator that he is known today, Mr. Dy Tioco also started from the bottom. His journey to success, as he said, was not merely a matter of luck, but a product of hard work and persistence.
After finishing his Bachelor’s degree in Journalism at the University of Santo Tomas (UST) in 1985, Mr. Dy Tioco worked as an artist and repertoire at OctoArts International where he was responsible for screening all international releases of different music genres from globally renowned record labels like Virgin, Chrysalis and RCA, while ensuring they fare well in the local market.
Following a short stint at a different newspaper company, he then joined The Philippine Star in 1987 as a branch coordinator for the classified ads section. He later moved to the company’s marketing research unit, and became an account manager handling advertising sales where he made his mark as one of the company’s top sales performers.
Mr. Dy Tioco steadily rose through the ranks and was appointed as advertising manager in 1997 and became the advertising director three years later. In 2012, he was further promoted as the senior vice-president for sales and marketing of The Philippine Star, and was tasked to hold the same position at the country’s top business daily BusinessWorld in 2015 after it was added to the roster of titles under the Philstar Media Group. In 2016, Mr. Dy Tioco was appointed as the executive vice-president for sales and marketing of both The Philippine Star and BusinessWorld.
Under Mr. Dy Tioco’s direction, The Philippine Star over the years has cemented its position in the industry despite the massive changes brought by digitization. From a post-EDSA Revolution newspaper, he had maneuvered The Philippine Star’s transformation into a newspaper-based multimedia organization, crossing the borders of digital, mobile, television, and billboard.
The company embraced a fresh mantra by adopting a more modern and multifaceted approach to reach its readers. It has introduced its own brand of mobile and social media platforms, as well as an augmented reality app called “LiveIt!” with huge success.
The Philippine Star also expanded into television with PhilstarTV, which helped the brand strengthen its influence in the lifestyle space. It also broke ground as the first paper to venture into the teleserye genre with the Single/Single, which brought huge revenues and recognitions for the company. Single/Single movie becomes the first foray of Philstar Media Group into movie-making.
To continuously buoy up key stakeholders and advertisers, Mr. Dy Tioco also developed a brand creative solution under an umbrella brand called Stellar. He also led the company’s first venture into out-of-home advertising with Philstar Outdoor with content-rich digital billboards and indoor touchscreens with Newspod.
A year since his appointment in BusinessWorld, Mr. Dy Tioco helped the country’s premier daily earn more revenues through leading the company in conducting high-impact on-ground events. These serve as great avenues for industry and government leaders to converse on key challenges and opportunities for the nation. Some of the most notable and profitable events that BusinessWorld had successfully organized were the annual BusinessWorld Economic Forum, the BusinessWorld ASEAN Regional Forum, and the BusinessWorld Industry 4.0 Summit.
Aiming to reach out to the country’s future business leaders, Mr. Dy Tioco also conceived BusinessWorld SparkUp, a multimedia platform designed for business-minded millennials and the startup community.
Mr. Dy Tioco’s groundbreaking initiatives have helped him earn some accolades and recognitions. In 2016, Mr. Dy Tioco received the Outstanding Achievement in Marketing Communications citation at the 37th Agora Awards for pushing the envelope for print media to thrive well in the changed media landscape. He was also named as one of the recipients of the 2016 CEO Excel Award from the International Association of Business Communicators (IABC), and was recognized by his alma mater, UST, as an Outstanding Thomasian Alumni (TOTAL) awardee in the field of media.
GEARED TO LEAD
Backed with his extensive knowledge in the field of marketing and communication, together with a set of dependable management skills, Mr. Dy Tioco is indeed a best fit for leading a respected organization like the PMA in this crucial era of digitization. His thrusts for the organization alone will further attest to this.
“This 2020, these will be the thrusts of the PMA Board: pursue the redefinition of marketing by understanding the effects of the Fourth Industrial Revolution (IR4.0) to our industry; prepare to reformat our organization for us to be able to respond better to the impact of new technologies; and as we have been championing the MSMEs, let’s invite more members to be part of PMA, especially those who belong to the startup community whom we can learn on the brilliance of solution-driven ideation and for our organization to reach out to realize their potential and look forward to a bright economic future for our country,” Mr. Dy Tioco said.
These thrusts, he said, will be achieved by developing a culture of solution-based innovation within the PMA; repositioning the PMA as an organization that keeps redefining marketing; and making the association a community of growing businesses through effective marketing.
Mr. Dy Tioco also shared some of his “wish list” that will help the organization succeed in its plans this year. This includes bringing the National Marketing Conference (NMC) back to its prestige; expanding the Agora Awards; shifting content to innovation and new marketing journeys through NMCs, General Membership Meetings, and Public Relations; putting a premium on membership worthiness; generating a more aggressive approach in creating more revenue streams for PMA’s sustainability; establishing new education programs involving the new technologies to equip the youth; and seeking more collaboration with the different industry associations as he believes that industry stakeholders should all work as one.
With the big waves of changes and challenges that the marketing industry is currently facing and will encounter in the future, Mr. Dy Tioco believes that the roles of PMA leaders and members have never been more important.
“Together, let’s use our talents, geniuses, resources, and hearts to guarantee that the PMA will not just be able to keep afloat, but also surf above the waves, dive deep into the ocean to discover more hidden treasures, and swim back to the shore stronger, better, and more future-ready,” he said.
Other members of the 2020 PMA Board of Officers are Executive Vice-President/Director for IPSUM Alpha Gracias C. Allanigui, CPM (chief relations officer, United Neon Media Group); Vice-President Michelle D. Ballesteros for CPM Asia (chief marketing officer, Exlink Management & Marketing Services Corp.); Board Secretary Marco Antonio C. Montes (regional head, Altos Montes Region, Manulife Philippines); and Treasurer Ma. Cristina L. Oreta, CPM (chairman, president and CEO, E Methods for Business Management).
The 2020 PMA Directors are John Paul D. Palma Gil for Innovation/Co Director – IPSUM (account manager, ABS CBN Digital Media Division); Maeyeth C. Cadungog, CPM for Agora Awards (lead service provider/consultant, Pax Associated Services, Inc.); Kharla Mae A. Villaflor for Chapters (marketing communications officer, Ateneo Graduate School of Business, CCE); Enrique Pablo O. Caeg, CPM for Education (president, Retail Academy of the Philippines); Ma. Christina B. Guevarra for Government & Consumer Affairs (vice-president – marketing, JAM Liner, Inc./Philtranco; Marilyn R. Ventenilla CPM for Youth & Academe (senior director, Communications and Marketing Teleperformance [Telephilippines], Inc.); Jaana Loreen F. Abrogena, CDMP for PR & Corporation Communications (president, CEO and founder, Dice205); Ronie B. Ilisan, CPM for membership (managing director, Greatminds Integrated Consultancy, Inc.); Rona L. Gianchand for GMM & Fellowship (AVP, St. Peter Life Plan); Ronie Marie P. Reyes, CPM for Ways & Means (director for marketing communications, Entrata Hotel Services, Inc./Crimson Hotel); and immediate past president Mary Faith B. Abaño, CPM for International Affairs (general manager, Celestial Media Services, Inc.).
The commitment to build up an efficient and reliable network of transportation systems can often be seen within the Department of Transportation (DoTr) in the previous years. Driven by the present administration’s infrastructure agenda, DoTr has been visibly diligent in initiating and completing several projects around the country recently.
DoTr completed a total of 119 airport projects from 2016 to 2019, the Philippine News Agency reported on Dec. 30, 2019. Seventy projects are under the department, while 49 are under the Civil Aviation Authority of the Philippines.
Among these completed projects, Sangley Airport in Cavite was intensively pushed to be completed within four months of 24/7 construction. Seen as one of the solutions to decongest the Ninoy Aquino International Airport (NAIA), the Sangley Airport had its operational dry run on Oct. 29, 2019 and commenced general aviation and turbopop cargo operations the following month.
Also seen to help ease congestion in NAIA, the Bulacan International Airport had its notice of award issued to San Miguel Holdings Corporation on Aug. 14, 2019 and concession agreement signed on Sept. 18, 2019.
Clark International Airport (CRK), meanwhile, is now handled by the Luzon International Premier Airport Development Corp. when DoTr turned over the airport’s operations and management on Aug. 16, 2019. A new passenger terminal for CRK is being constructed, BusinessWorld reported last Jan. 9, and the DoTr said that the project “is deemed 93.31% complete.”
Rehabilitations of some of the country’s airports were also conducted last year, including the NAIA Terminal 2 and the recently expanded Camiguin Airport.
Night-rating projects are also in DoTr’s pipeline, in efforts “to increase the operational efficiency of airports and reduce day-time flight congestion.” As of the end of 2019, 23 out of 42 commercial airports have been night-rated.
Railway infrastructure projects have also progressed last year, with six railway projects under construction.
The Metro Manila Subway broke ground last Feb. 27, 2019.
The Metro Manila Subway, the Philippines’ first underground railway system, broke ground last Feb. 27, 2019, and the clearing phase of the subway’s construction began last Dec. 21.
Year 2019 also saw the nearing completion (96%) of a portion of the Common Station in Quezon City, which will connect MRT-3, MRT-7, LRT-1, and the Metro Manila Subway.
LRT-1 Cavite Extension and LRT-2 East Extension projects are 30.74% and 71.19% complete, respectively, as of October 2019. MRT-7 is more than 50.69% complete as of last January.
MRT-3 has undergone rehabilitation in 2019, with mainline tracks replaced and its signaling and communications system modernized, among other improvements. Moreover, Dalian Trains entered the system last year, from test runs in the first months to the regular fleet of one train set during evening off-peak hours since Oct. 15, 2019.
Under the North South Commuter Railway Project, the Philippine National Railways Clark Phase 1, which runs from Tutuban to Malolos, started its actual construction on Feb. 15, 2019; while Phase 2, which runs from Malolos to Clark, reportedly attracted “record-high” 11 bidders.
Before the year ended, PNR formally extended its rail services to Los Baños, Laguna with the addition of new stations and a train set from Japan. Furthermore, brand new Diesel Multiple Unit railcars came from Indonesia, adding two new trains to the expanded line.
Other rail projects in the pipeline include the PNR Calamba, PNR Bicol (Subic to Clark), Mindanao Railway, LRT-2 West Extension, LRT-4, and the Cebu Monorail.
Maritime projects continue to unfold as well, with 325 port projects finished from 2016 to 2019. A total of 181 commercial port projects are under the Philippine Ports Authority, while 144 social and tourism port projects are under the DoTr.
Among the completed port projects, the new passenger terminal building at Cagayan de Oro (CDO) Port is the country’s largest, with a daily capacity of 3,000 passengers. The port’s new electronic gate complex with weighbridge was inaugurated on July 15, 2019. Opol Port in Misamis Oriental was also unveiled on the same date, serving as a back-up port to help decongest the CDO Port.
Within Metro Manila, the DoTr launched the Cavite-Manila Ferry Service last December 2019, with two vessels, namely the MB Seaborne and the MV Island Sabtang, serving the Cavite City Port to Liwasang Bonifacio route.
Batangas Container Terminal Expansion Project, which increases the annual handling capacity of the Port of Batangas from 300,000 TEUs to 400,000 TEUs, was completed on April 29, 2019.
Projects in progress include the Isabela Port in Basilan, the PAGASA Seaport Project Phase 1, and the Cebu International Container Port.
As DoTr celebrates 121 years in service, DoTr Secretary Arthur P. Tugade stressed among the department’s staff to value both their accomplishments and their targets.
“Let’s savor this moment by thinking of what has been done, and what we expect to do. By making a commitment that what has been done is not enough, because the best is never enough. And the best is yet to come,” Mr. Tugade said in a statement. — Adrian Paul B. Conoza
INFLATION likely quickened further in January mainly on the back of an uptick in food prices, some supply side shocks from the Taal Volcano eruption and continued diminishing base effects, analysts said in a BusinessWorld poll, with the central bank seen easing rates this week ahead of emerging risks to prices.
A poll held last week among 13 economists yielded a 2.7% median estimate for January headline inflation, close to the lower end of the 2.5% to 3.3% estimate range given by the Bangko Sentral ng Pilipinas (BSP) last Friday.
If realized, this would be the third consecutive month of faster inflation and will be a pickup from the 2.5% pace logged in December. However, this is still slower compared with the 4.4% logged in January 2019 and is well within the 2-4% target for the year.
The Philippine Statistics Authority will report official January inflation data on Wednesday (Feb. 5). The BSP’s Monetary Board will meet to review their policy settings for the first time this year on Thursday, Feb. 6.
“Unstable prices in some occasions has brought about the erratic behavior of prices which affect stability in the economy plus unexpected natural calamities,” Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said in an e-mail.
Security Bank Corp. Chief Economist Robert Dan J. Roces said these cost-push effects from the Taal eruption “appear to be moderate” and “may be fully felt by February, if at all, as agricultural activities resume in the area.”
BSP Governor Benjamin E. Diokno earlier said inflation is likely to stay stable despite risks from the Taal Volcano eruption.
The government estimates that foregone income from the incident is between P4.3 billion to P6.7 billion, which could result to a dent in the output growth within the Calabarzon Region for the first quarter.
The Philippine Institute of Volcanology and Seismology has already lowered Taal Volcano’s alert status to Level 3 from Level 4 on Jan. 26, two weeks since its eruption activities started. This has allowed some residents from several towns to be allowed to return to their homes.
Aside from the Taal eruption, the African Swine Fever (ASF), which caused prices of pork substitutes to rise, continues to be an upside risk to inflation, according to Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.
“The ASF would remain to be a threat in terms of some pick up in the prices of fish, chicken, beef, and other alternative meat products,” he said in an e-mail.
Meanwhile, Thatchinamoorthy Krshnan, economist at Oxford Economics, pointed out that the “base effects that caused inflation to pick up in December should continue to affect January 2020 inflation but to a smaller extent.”
Central bank officials earlier said inflation is likely to settle within the midpoint of the BSP’s 2-4% target range this year, with risks tilting slightly upward.
RATE CUT ON THE TABLE
Amid continued upside risks to inflation, 10 out of the 13 economists who participated in last week’s poll said the central bank would probably cut rates by at least 25 basis points (bps) this week.
Key policy rates currently stand at four percent for the overnight reverse repurchase facility, while overnight deposit and lending rates are at 3.5% and 4.5%, respectively.
This, following 75 bps worth of rate reductions last year, which partially offset the 175 bps in hikes done in 2018 to quell inflation.
Emilio S. Neri, Jr., lead economist at Bank of the Philippine Islands (BPI), is of the view that the Monetary Board (MB) is “aware of the risk that the window for cutting rates is starting to close.”
“If they don’t cut on the sixth [of February] they might miss their chance to do so for the rest of 2020 as there are a number of risk factors emerging that may lead to a faster inflation trajectory for the rest of the year,” Mr. Neri said in an e-mail.
Central bank officials have flagged several upside risks to inflation for this year, including volatile oil prices due to Middle East tensions, impact of the ASF on selected items, the hike in excise taxes on alcoholic beverages following the new sin tax law, as well as pending petitions for electricity rate adjustments.
Mr. Diokno has said the central bank will not be “as aggressive” in cutting rates this year compared to 2019, still looking to cut rates by at least 50 bps, with a 25-bp cut on the cards as early as this quarter.
The MB will hold a policy setting meeting twice in the first quarter — on Feb. 6 and on Mar. 19.
“With the growth outlook dimming on a global scale and with the domestic economy needlessly hampered by previous policy tightening, follow through easing may help ensure that the Philippines can safely navigate the more challenging environment,” ING Bank NV-Manila Senior Economist Nicholas Antonio T. Mapa said.
The coronavirus outbreak may also be taken for consideration for another possible rate cut, according to Capital Economics’ Asia Economist Alex Holmes.
“It’s a close call, but given the potential impact of the coronavirus on the tourism industry we think the [central] bank will opt to ease sooner rather than later,” Mr. Holmes said.
Meanwhile, for ANZ Research Economist Mustafa Arif, Mr. Diokno’s comments on a first-quarter rate cut may suggest that the BSP will ease in March instead of this week amid risks coming from higher prices in the near term due to weather disruptions.
“Furthermore, expectations of a higher fiscal impulse this year suggest that the BSP can afford to be less aggressive,” Mr. Arif said.
In terms of reductions in reserve requirement ratio (RRR) for banks, BPI’s Mr. Neri said that the BSP is likely to keep current levels and to look for more evidence of faster loan growth before going for another cut.
“They can continue to deliver RRR cuts as long as inflation remains comfortably below the policy rate,” Mr. Neri said.
After 400 bps worth of cuts in 2019, the reserve requirement ratio for big banks is now at 14%, while the RRR for thrift and rural banks are at five and three percent, respectively.
The Monetary Board likewise reduce RRR for nonbank financial institutions with quasi-banking functions to 14%.
Mr. Diokno has vowed to reduce the reserve requirement of big banks to the single-digit level by the end of his term in mid-2023.
MORE MEETINGS with the Chinese government could help address the “slow pace” of disbursement of official development assistance (ODA), a top official said.
“Actually, the ODA coming from China has been rather slow,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a forum on Friday.
So far, the only ongoing China-funded projects are the Chico River Dam irrigation project in Cagayan Valley and the Kaliwa Dam project which “has barely started,” Mr. Pernia said.
“Compared with Japan, Japan International Cooperation Agency (JICA) ODA has been much faster, there are so many projects now being funded that are ongoing,” he said.
The Japanese and the Philippine governments are holding regular meetings to discuss the progress of Japan-funded infrastructure projects. They had their ninth meeting last month.
Asked if more frequent meetings can address the slow pace of disbursements, Mr. Pernia told reporters: “I hope so… maybe it’s going to be more effective than this one.”
For instance, Mr. Pernia pointed out that even the process of screening and selecting the companies they will work with has been “rather slow.”
China ranked seventh with $273.3 million worth of ODA loans as of March 2019 based on data from the National Economic and Development Authority (NEDA).
Japan remained the country’s top source of ODA at $8.152 billion worth of loans, followed by multilaterals such as World Bank ($3.146 billion) and the Asian Development Bank ($2.865 billion).
ODA is among the funding sources sought by the government to finance its projects and programs, especially infrastructure ones.
According to the list of administration’s infrastructure flagship projects, 49 out of 100 projects will be funded through ODA worth P2.31 trillion, followed by the 29 projects worth P1.77 trillion through public-private partnerships, while the remaining 22 projects will be funded through the national budget (P167.95 billion).
DEBT STOCK TO DECLINE
Despite higher borrowings to fund the state’s growing spending plan, which is now set at P4.1 trillion, Mr. Pernia said the country can still manage a healthy debt burden.
The country’s debt-to-gross domestic product (GDP) ratio, or the total debt relative to economy, dipped to 41.5% last year from the 41.8% recorded in 2018. That was the lowest debt stock level the country had since 1986, the earliest year with available data.
“[Someone projected that] we’re in danger of overshooting our debt level beyond 100%? No way. Actually our debt level now, domestic as well as foreign, is only 41.5%. If you look at foreign debt level it’s only about 23%. It’s unlikely that we would be hitting even 50% debt to GDP ratio,” he said.
Finance department’s Chief Economist Gil S. Beltran said the country’s debt stock level could even further decline to as low as 40% by 2022.
Security Bank Corp.’s Chief Economist Robert Dan J. Roces shared the same 40% projection, adding that the debt level will likely stay at a “prudent limit” of 41-42% this year, “with more fiscal reforms under way.”
“I attribute the lower debt-to-GDP ratio in 2019 to government underspending on the back of a delayed national budget. This, plus improved fiscal efforts that narrowed the fiscal gap reduced borrowings for the year and thereby the overall debt stock,” Mr. Roces said in an e-mailed response on Friday. — Beatrice M. Laforga
THE Philippine Statistics Authority (PSA) is confident in using 2018 prices as the base for measuring the country’s gross domestic product (GDP), saying that there are no implications in doing so despite multi-year high inflation rates during that year.
“Wala namang bearing ’yung pagpili ng base year (There is no bearing in choosing that base year)… I think 2018 is a very good time as a base,” PSA chief Claire Dennis Mapa told BusinessWorld on the sidelines of an event in Quezon City on Thursday.
The PSA last month announced it will begin using 2018 prices as the base for measuring GDP starting this year.
When asked of the implications of 2018 as a base year, Mr. Mapa cited that even 1985, a previous base year, was also a “problematic” year and given the distance between previous base years 1985 and 2000, the new chosen base year is “a bit late.”
The country’s national accounts have undergone four overall revisions — 1968 (from base year 1955 to 1967), 1973 (from base year 1967 to 1972), 1995 (from base year 1972 to 1985), 2011 (from base year 1985 to 2000).
“Rebasing is a common practice wherein we rebase the GDP and other indices to make sure we are capturing the economic activities of the industry currently,” Mr. Mapa said.
Using an outdated base could mean that the growth of an economy may be underestimated as new industries may not be captured by the old method.
This includes sectors with growing importance such as information and communication technologies (ICT), business process outsourcing, and e-commerce.
Mr. Mapa said the PSA added around seven more categories in the sector, which include education, health, and ICT that were previously tagged under “other services.”
Economists interviewed by BusinessWorld shared Mr. Mapa’s sentiment.
“There’s no problem in updating the base year to a more recent period since it would be more reflective of goods and services available in the market, as well as the current conditions in the economy,” said University of Asia and the Pacific Economist Victor A. Abola in a phone interview.
For UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion, the rebasing will represent a “more updated view of real GDP growth.”
“The goal is to capture what is really happening in the real macro-economy. The rebased series, compared to the previous base series, may actually reveal pertinent and helpful information about the said series,” Mr. Asuncion said in an e-mail.
There had been discussions for years with regard to which base year to use in updating the national accounts. The PSA had considered 2012 and 2015 as base years but were turned down by the PSA Board, which consisted of the Secretary of Socioeconomic Planning and key representatives of government agencies.
The PSA reports GDP growth on a quarterly basis as an overall measure of the Philippine economy’s performance.
The economy expanded by 5.9% in 2019, the slowest in eight years or since the 3.7% print in 2011, breaking the economy’s seven-year streak of at least six percent growth.
Last week, National Economic and Development Authority Undersecretary Rosemarie G. Edillon said the government will likely adjust official targets based on the revised base year.
Based on current assumptions, the government targets 6.5-7.5% GDP growth this year until 2022.
The PSA will conduct briefings for the media ahead of the first-quarter GDP growth release on May 7 to explain the process of rebasing and on how it is expected to affect historical data. — with inputs fromMark T. Amoguis
INFLATION likely quickened further in January mainly on the back of an uptick in food prices, some supply side shocks from the Taal Volcano eruption and continued diminishing base effects, analysts said in a BusinessWorld poll, with the central bank seen easing rates this week ahead of emerging risks to prices. Read the full story.
THE Securities and Exchange Commission (SEC) has lifted its investor warning against DV Boer Farm International Corp. after it agreed on the company’s P3.015-million settlement offer.
In a Jan. 31 order posted on its website, the SEC said it had approved the settlement from the farming investment company and has received a partial payment of P300,000 last week. The remaining P2.715 million must be paid within the next three months.
DV Boer also submitted an affidavit stating it will stop selling investment contracts through its “Paiwi Program” until it obtains a separate registration from the SEC, and it will allow the SEC to send representatives to inspect its farm in Batangas for at least a three-month period.
“…(the) case is now deemed settled without any determination of fault or guilt on the part of DV Boer Farm International Corp.,” the SEC said.
To recall, the SEC issued in April 2019 an advisory against investing in DV Boer as it found the company operating an investment scheme called “Paiwi Program.” It involves goat leasing for dairy and meat, cattle raising, and other similar programs for rabbit and chicken, with packages costing between P10,000 and P2.06 million.
The SEC said the program is not registered with the commission and the company is not authorized to sell securities. Without a secondary license and without registering the securities with the SEC, the company is illegally operating the investment scheme as it violates the Securities Regulation Code.
The SEC initially imposed a P6.03-million fine on DV Boer in November, derived from 578 Paiwi Partners multiplied by P10,000 and five directors multiplied by P50,000. The company filed its first settlement offer in December, which was denied by the SEC in January.
In its second attempt at a settlement, DV Boer explained it cannot pay the original fine because of a “liquidity problem” from difficulty accessing banks and increasing losses as a result of animal deaths in its farm as affected by the Taal Volcano’s eruption.
The SEC then approved in a meeting on Jan. 23 reducing the fine on DV Boer to P3.015 million. The settlement offer is made effective upon public disclosure of the order. — Denise A. Valdez
MOBILE phone users may start applying for mobile number porting in the third quarter of this year, Globe Telecom, Inc. Chief Commercial Officer Alberto M. de Larrazabal said.
“I think the schedule is third quarter [of] this year,” Mr. Larrazabal told reporters on Friday last week, when asked about the actual rollout of the mobile number portability services.
He added: “What we are doing in the Philippines is we are setting up the clearing house.”
Globe, PLDT, Inc.’s wireless unit Smart Communications and new player Dito Telecommunity Corp. have tapped Florida-based Syniverse as their mobile number portability service provider.
Syniverse will serve as a clearinghouse for the telcos to ensure the smooth implementation of number porting services. The company assists mobile operators globally in managing and securing their mobile and network communications.
“The three of us are investing [in the clearing house], and we will set it up,” Mr. de Larrazabal said.
He said the three telco firms will jointly appoint someone to manage the clearing house.
The three telco firms received on Jan. 21 an approval from the Securities and Exchange Commission on the incorporation of the Telecommunications Connectivity, Inc., which they jointly put up to implement the Mobile Number Portability (MNP) Act.
The new company, according to Globe, will “enable number porting services in line with the new mobile number portability initiative of the government or Republic Act 11202 also known as the ‘Mobile Number Portability Act.’”
The MNP Act, which was signed by President Rodrigo R. Duterte into law in February 2019, allows mobile phone users to switch networks without changing their numbers.
Under the law, mobile number portability refers to the ability of a mobile postpaid or prepaid subscriber, who has no existing financial obligation to the service provider, to retain an existing mobile number despite having moved from one mobile service provider to another, or to change subscription mode from postpaid to prepaid or vice versa.
The law requires telcos to provide mobile number portability to subscribers nationwide free of charge.
Every telecommunication service provider has to change subscription mode within 24 hours from the time a subscriber submits application, the law also said. — Arjay L. Balinbin
